Tax freedom day for Canadians happened May 24, a week later than last year, calculated the Fraser Institute. (Pixabay Image)

Tax freedom day for Canadians happened May 24, a week later than last year, calculated the Fraser Institute. (Pixabay Image)

‘Tax Freedom Day’ in Canada is coming a week later this year

Fraser Institute calculates May 24 as day average household income matches tax payable for 2021

After Monday, Canadians start working for themselves – at least, that’s according to the Fraser Institute.

May 24 has been calculated as tax freedom day in Canada by the think-tank group. That means the total income made to this date by the average household of two or more people matches their total taxes to be paid in 2021.

That amount – charged by federal, provincial and municipal governments – equates to $48,757, roughly 39.1 per cent of the average annual household income of $124,659.

“This year, Tax Freedom Day arrives a week later than last year because of the increase in tax revenues forecasted by Canadian governments in 2021,” Jake Fuss, senior economist at the Fraser Institute, said in a release.

ALSO READ: Bank of Canada warns of rising risks from household debt, and a hot housing market

Indications suggest Canadians can expect that date to move farther into the calendar, the institute writes, as the $233.5 billion budget deficits the federal and provincial governments are running for 2021 lean heavily on taxes being deferred into the future.

Given those numbers, the Fraser Institute calculated balanced budget tax freedom day to be July 7. Such a hypothetical scenario determines the date Canadians would start working for themselves if the various levels of government paid for their spending with tax money collected this year.

“Future generations of Canadians will have to pay significantly higher taxes for the unprecedented deficits governments across Canada are running,” Fuss said.

Taxes payable used for the calculations include those on income, payrolls, health, sales, property, fuel, carbon output and more.


 

Do you have a story tip? Email: don.descoteau@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

Financetaxes

Just Posted

Douglas Denyer walks with his wife Dorothy, who passes away at 90. The long-time resident of Langley and Rotarian since 1984 turned 100 on June 16. He has two sons, five grandchildren and four great-grandchildren. (Special to Langley Advance Times)
Celebrating ‘a beautiful life,’ Langley senior turns 100

‘I’ve always tried to help out everyone I can” Douglas Denyer says

Vancouver Giants will return to the ice on Oct. 8, hosting the Prince George Cougars at Langley Events Centre. (Special to Langley Advance Times)
Giants will renew division rivalry with Cougars when season resumes in October

First game at Langley Events Centre since February of last year

A flower-bedecked memorial to one three people who died at the scene of a suspicious house fire in Langley stands outside the burnt-out house in the 19600 block of Wakefield Drive on Monday, June 29, 2020. (Dan Ferguson/Langley Advance Times)
First hearing for man charged in Langley triple homicide

Kia Ebrahimian faces three counts of second degree murder

Big Splash water park is located in Tsawwassen. (submitted photo)
Big Splash reopens Canada Day with changes to keep the water park ‘safe for everyone’

Executive Hotels & Resorts has owned and operated the attraction since 2017

For more than a year, Rene Doyharcabal and a small group of neighbours in Langley’s Brookswood neighbourhood have been going out every evening to show support for first responders by honking horns and banging pots and drums. Now, a neighbour has filed a noise complaint. (Langley Advance Times file)
Noise complaint filed against nightly show of support for health care workers in Langley

Langley Township contacted group to advise of complaint, but no immediate action is expected

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Most Read